We’ve always been a country that breeds high quality innovators, with some of our companies and entrepreneurs going on to change the world. But with technology the way it is now, we can’t just think about the great businesses of yesterday. Right now, there are dreamers and creative founders looking to establish their own small businesses and future corporations.
The good news is, there has never been a more exciting time to be starting out in a business in Australia. One of the biggest reasons for this is the changes that are coming into play around tax for businesses!
1. Because small business owners are up for a 5% discount on their tax
Starting next year, if you’re a business owner, you’ll be looking at a discount of up to 5% off your total tax up to $20,000. That might not sound like a huge amount, but when you’re trying to establish a company and turn it into a viable, profitable business, it could make a big difference. Getting a little extra cash back that could be spent on marketing or put towards your cash reserves is never something to laugh at.
2. For the first time ever, your costs in setting up your business can now be claimed
Before, if you wanted to start a business, you were going to be looking at your lawyer or accountant’s hourly rates and feeling a bit of a pinch. Any of those costs that you incurred while starting your business weren’t able to be claimed on tax, meaning you were going to be out of pocket for some pretty crucial advice and guidance. That’s changing now – meaning that if you seek professional help with your business before you’ve even registered the name, you’ll still be able to claim those fees back on your tax!
3. Any electronic devices you give to your employees no longer qualifies for FBT
We all know how important technology is to almost any business. When your employees’ jobs, tasks and outcomes are made a lot easier by iPads and other tablet devices, you’d be mad not to provide them. Previously though, that could run you into a few issues with Fringe Benefits Tax, as devices that your employees could take home at the end of the day didn’t qualify as purely for work. That’s changing now – if you provide electronic devices to your employees, FBT won’t be an issue!
If these kind of changes continue happening, the situation for small businesses could get even better! The best way to make sure you are staying on top of important tax and business changes is to keep in touch with a pro-active accounting partner who can offer high quality guidance and advice. At Charltons, we make sure that our clients are kept fully informed of any changes that could affect or provide new opportunities to their business.
Charltons are one of Sydney's leading accountants, offering expertise in a range of different areas. We've helped thousands of businesses grow and become long term successes, and we have a vast amount of knowledge around business success. If you're interested in developing a growth plan, understanding how technology can help you grow and developing a bright future, we are waiting to hear from you!
